Bush block

[TassieTiger]

A tax dodge? Who implied a tax dodge ? “Dodging“ tax as you elude, is illegal - where a legitimate tax minimisation strategy, that may or may not develop into a business, is a way of procuring wants and needs now and Into the future - the now, being somewhere to shoot / camp etc...now if Harry does it correctly, he can generate income in the short term to cover his expenses and provide Himself with real opportunities, for long term capital growth...it’s not rocket science - but it takes work and it’s a choice.
Or he can simply take advantage of amazingly low interest rates and pay off his bush block...straight up - a choice.
Or he can buy nothing and go to ranges...and support their purchase of land. Another choice.

I am a tech who also owns a farm or two...I know nothing either.

[Stix]

Harrynsw gets it.

In my learned opinion he is asking about a bush block to go camping & shooting on etc not a business or tax dodge.

I'm a pilot who owns and runs a farm but hey what would I know?

Just trying to help Harrynsw

Hey FNQ...its not me who is the one suggesting you dont know what your talking about.

Its you suggesting others dont know what they are talking about, & maybe suggesting they are talking rubbish about cash crops with no idea of the cost of raising cattle...

Also, as Tassie says, no one is suggesting tax avoidance--dunno where that comes from.. .& there is nothing wrong with greatly reducing your tax by investing in property &/or a second business, in fact, believe it or not, the Government are HUGELY encouraging of the principle...proof of this is tax deductions & depreciation for costs incurred & capital value losses of plant & equipment....or as its termed, negative gearing....it goes a long way to driving further investment for those that are able to afford it...

Like you, im just giving an opinion, & throwing some random ideas out there as to how he could minimise the out of pocket cost, or value add--even if it is to get some good quality & cheap meat on his plate, so as to make the idea more palatable...

Anyway...no hard feelings...

[TassieTiger]

This is an example of what’s available in Tas - maybe a little small, but it’s relative.
https://m.realestate.com.au/property-re ... -202648918

$120k x 2.50% (interest only) = $3000 pa or $57 a week...
If you put that $57 a week into the bank, you’d get $10 a year in interest...one would think, the land and the plantation trees Once mature, would offer significantly better returns and tree plantation = primary producer status.

[bladeracer]

This is an example of what’s available in Tas - maybe a little small, but it’s relative.
https://m.realestate.com.au/property-re ... -202648918

$120k x 2.50% (interest only) = $3000 pa or $57 a week...
If you put that $57 a week into the bank, you’d get $10 a year in interest...one would think, the land and the plantation trees Once mature, would offer significantly better returns and tree plantation = primary producer status.

That property is listed as "residential", is shooting allowed on residential blocks down there?

[bladeracer]

Here, here Stix - as you know - certain farming opportunities abound, if one cares to research...

As my esteemed accountant once advised - show me a doctor or a lawyer in this country that doesn’t own a “farm”.....

When I was younger it seemed to be the accountants that had all the small farms.

[TassieTiger]

There are about 2.4 houses in Nugent. It’s residential but effectively in the middle of no where.
There’s another one on same website, similar set up - 250 acres for best offer over $220k...rural - heavy bush. 50 mins out of Hobart.

[bladeracer]

There are about 2.4 houses in Nugent. It’s residential but effectively in the middle of no where.
There’s another one on same website, similar set up - 250 acres for best offer over $220k...rural - heavy bush. 50 mins out of Hobart.

I just showed Rose and noticed this at the bottom.
"The property is being offered to purchase now with the plantation contract being retained by the current owner until harvested (expected due between 2026-2030). Take the opportunity to own your own 20+ hectare property in this well known area."

So for $120,000 you are really only getting a place to shoot and camp in for possibly the next ten years, still doesn't sound like a bad deal though. At that price it's probably even doable for somebody living in the big bit of Oz, that is happy to commute down to Tassie occasionally. $60-$90 for a flight from Melbourne to Hobart is nothing, probably costs me that to drive up to Melbourne and back. Spend a fortnight playing in the trees then fly home again.

[TassieTiger]

It’s up to the new owner whether they retain the “tree farm” or doze a 600m straight length through the lot - it’s not written in stone.
The reason they do the sale like this - is because the sale doesn’t attract the same GST / as it’s sold as a working farm.
And I can tell you from experience- some stooges down here are charging $150-200 a ton for firewood - where a combination of plantation (chip/saw) logs is achieving approx $20 a ton (stumpage or clear value to owner). A no that should rise over next 10 years...

Assuming down the middle, that they went with 1200 trees per acre and with a very conservative 2t average yield per tree but with a 30% loss of tree stock due disease, over growth, etc, , you could estimate very roughly -
(50 acres x 1200 trees) x 30%loss = 42,000 x $20 = a hopeful return of $840,000 and more importantly a place to shoot, camp and run naked through the wilderness....weeeeeeeeee

[Stix]

A big rehab job though hey...

Id love to get something like that for cheap, so dont get me wrong...but to rehab felled forrest is a mammoth task..as it just leaves a baron landscape...

[TassieTiger]

A big rehab job though hey...

Id love to get something like that for cheap, so dont get me wrong...but to rehab felled forrest is a mammoth task..as it just leaves a baron landscape...

I’ve thought about that as well Stix - the fellers who come in for harvest, as you say, leave an absolute mammoth mess , so a person might be inclined to seek a lower initial $$$ return, in favour for replanting and clean up...or - maybe, consider a self managed selective harvest / pull the next and most cost effective saw logs, drag out the dead firewood and leave patches standing. If your return can be contracted via basic loading / haulage, your return is higher and you retain control of the harvest - just having to hit the contracted Weight number...there’s a lot in it from an admin perspective - no doubt.

In fact, within one of my small farms, I’ve got a beautiful 10 acre patch of 25 year old pines. They weren’t thinned nor especially cared for but many trees are very tall and strong. I’ve been approached by 3 companies about taking the trees - and one offered a $$$ number plus resow - but I’ve spent a bit of time in that little pine forest hunting, tracking, resting, etc and I like it as it is...it’s worth more to me as it’s own entity than a raped piece of land with a few dollars in the kitty...

[Stix]

One of your farms...

You any good at tracking & hunting humans...

Might make like Grizzly Adams & come hide out in yr forrest for the rest of my time...


But seriously...sounds like a good offer, & a good reason to decline it...

Good luck to you....

Btw...deer & bunny's in that little forrest farm...?...

[TassieTiger]

Haha. It’s not hard to do mate (at least on my little scale) and you don’t need a lot of $$$ but you do have to do the legwork / admin / research...But interest rates are as low as ever...Which helps.

Bunnies, wallaby, proper roo and my trail cams have picked up a couple fallow and a bloody family of goats lol. But - the problem with smaller based stuff is you have to be very careful of shooting direction...it’s easy enough to line up a direction for paper punching but proper hunting needs much, much, much bigger property’s than I am trying buy. My dogs don’t go hungry but glass A game is a bit thin.

[FNQ]

[TassieTiger]

Here’s another that might be a worthy contender -
https://m.realestate.com.au/property-re ... -202352578
250 acres for a little over $200k...45 mind from Hobart and backs into 3000 acres of state forest...

Now - if you were into shooting / hunting only - with no intent on farming, or trying to generate a income...check this one out...

https://m.realestate.com.au/property-re ... -202618010
650 acres of land, just on an hour from Hobart, effectively remote in Tassie lol - I rang up myself and the owner is looking for offers around $150,000!!!

To buy this property at 2.5% interest rate - you’d need to find $70 a week interest only loan. Bloody cheap !
But the catch with this one - the land is under a number of environmental protections - no building unless approval process followed, no removal of trees, no Rec vehicular activities, etc...still - at $225 an acre, very cheap land.

BUT - of course, this is Taz...so, that itself can sux, so - maybe we could post up local bargains ? Show us what bush land prices are doing near you ? Maybe help out a fellow shooter but abdomen land and we all benefit...before it’s snapped up by those latte, sipping, chico name changing, its livin goose berries - who will rule out shootin all together.

[poid]

we've got a couple of farms in the family, one hobby and one grazing land. The grazing property has always generated enough income to pay for itself; at the moment we aren't running any ourselves but have some cattle under agistment. The biggest cost has been controlling noxious weeds such as tussock.

The hobby block has gradually been surrounded by 'tree changers', and so it's not a good shooting block anymore. I've thought about getting something else, bushy and surrounded by other bush blocks, as that would be better for shooting/hunting but haven't done so yet. There are plenty of those around, just depends on how much you want to/can spend on it.

3-4 hours out of Sydney also depends on where in Sydney you live. Our hobby block is 3.5 hours from my place almost completely via sealed roads, the grazing block is 4.5 hours with a fair chunk of dirt road. I get to the hobby block every month or so, and the grazing block maybe once a year to check on it. The extra hour driving on some pretty ordinary dirt roads makes a big difference.

By the time I spend some weekends camping, fishing, out in state forests I don't actually spend that much time at my own properties. That's something else to consider.

[Harrynsw]

we've got a couple of farms in the family, one hobby and one grazing land. The grazing property has always generated enough income to pay for itself; at the moment we aren't running any ourselves but have some cattle under agistment. The biggest cost has been controlling noxious weeds such as tussock.

The hobby block has gradually been surrounded by 'tree changers', and so it's not a good shooting block anymore. I've thought about getting something else, bushy and surrounded by other bush blocks, as that would be better for shooting/hunting but haven't done so yet. There are plenty of those around, just depends on how much you want to/can spend on it.

3-4 hours out of Sydney also depends on where in Sydney you live. Our hobby block is 3.5 hours from my place almost completely via sealed roads, the grazing block is 4.5 hours with a fair chunk of dirt road. I get to the hobby block every month or so, and the grazing block maybe once a year to check on it. The extra hour driving on some pretty ordinary dirt roads makes a big difference.

By the time I spend some weekends camping, fishing, out in state forests I don't actually spend that much time at my own properties. That's something else to consider.

Was just updating some details on my R licence today as you speak of it. Cheers